PREPARATIONS were under way last night for the break-up of the euro as Europe’s debt crisis spiralled out of control.

As Treasury officials worked through the night to soften the impact on
Britain, David Cameron warned that the single European currency was
facing its “moment of truth”.

Business Secretary Vince Cable went further
and spoke about “Armageddon” while Brussels officials warned that the
chaos threatened to plunge us all into a new recession.

Ministers are understood to be
deeply concerned that French President Nicolas Sarkozy and Germany’s
Chancellor Angela Merkel are secretly plotting to build a new, slimmed
down eurozone without Greece, Italy and other debt-ridden southern Euro-
pean nations.

Well-placed Brussels sources say Germany and France have
already held private discussions on preparing for the disintegration of
the eurozone.